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Private Equity Fund Managers with a Balanced Investment Strategy – November 2014

by Kamarl Simpson

  • 05 Nov 2014
  • PE

According to Preqin’s Fund Manager Profiles online service, there are currently 202 private equity firms considering a balanced investment strategy. Preqin defines a balanced strategy as investing across all stages of a company’s development, ranging from seed and venture capital to pre-IPO buyout financing. Of these 202 firms, 28% have raised at least one private equity fund focused on investments across all company stages in the last decade. 

A total of $105.6bn has been raised in the last 10 years by managers with a balanced strategy, and out of this total, North America-based managers account for the largest proportion in terms of both number of firms (75) and capital raised ($56.3bn). Collectively, these North America-based managers also have an estimated $13.6bn available in dry powder. Although Europe is home to the second largest number of balanced private equity fund managers (58), Asia-based managers have raised more capital in the last 10 years with $23.6bn to Europe’s $13.9bn. 

Warburg Pincus is the largest private equity firm by aggregate capital raised in the last 10 years that deploys a balanced investment strategy. The firm has an estimated $8.4bn in uncalled capital and a total of $38.2bn raised in the last decade for private equity investments, of which $34bn has been accumulated by its series of balanced funds. Warbus Pincus, established in 1966, recently closed its debut energy fund with $4bn in capital commitments. In addition, the firm’s latest balanced fund, Warburg Pincus Private Equity XI, closed in 2013, having secured $11.2bn. 

Capital International is the second largest firm to take on a balanced strategy, having raised $5.9bn across its balanced fund types in the last 10 years and holding an estimated $1.2bn in dry powder. The firm, with its private equity program dating back to 1992, focuses on investment opportunities in expansion capital, replacement capital and buyouts in emerging markets. The latest of its balanced funds to close in 2012 was the Capital International Private Equity Fund VI, which garnered $3bn in capital commitments.

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